Islamic Finance

Oman’s inflation rate picks up as prices rise on VAT


Published 24 May,2021 via Muscat Daily - Oman’s inflation rate, which remained in negative territory for more than a year, has now returned to positive territory, reflecting the slight increase in prices of certain items after the implementation of value-added tax (VAT) from April 16.

Annual inflation rate, which is based on the consumer price index, increased to 1.59 per cent in April from a negative 0.37 per cent recorded in March, according to the data released by the National Centre for Statistics and Information (NCSI). The consumer price index in April remained 1.47 per cent higher compared to the previous month, the data showed.

A moderate increase in inflation rate was expected after the implementation of VAT in the second half of April. The sharp price increase in transport group items and a seasonal rise in vegetables and fruits prices also contributed to the overall inflation growth in April.

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tags:

Macroeconomy
VAT
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Muscat Daily